Search results
1 – 10 of over 1000Nur Faiza Ishak and Vinesh Thiruchelvam
The purpose of this study is to discuss policy review in the interest of sustainable innovations in Malaysia’s public procurement. This study also offers the overall relationship…
Abstract
Purpose
The purpose of this study is to discuss policy review in the interest of sustainable innovations in Malaysia’s public procurement. This study also offers the overall relationship between existing policies related to sustainable innovations in public procurement and the coherences towards the four dimensions of sustainable innovations.
Design/methodology/approach
This study outlines the current policies in Malaysia which are related to sustainable innovation initiatives and explores the cohesiveness that appears disconnected and understood separately. Policy content analysis is conducted on the current policies related to sustainable innovations in the context of Malaysia’s public procurement.
Findings
This study observed that the current policies related to sustainable innovations in public procurement are actually interconnected with each other through a hierarchical framework. This study also demonstrates that the 12th Malaysia Plan has comprehensively encompassed every aspect of the environment, social, economic and innovation to contribute to one primary goal – green economic growth.
Research limitations/implications
The proposed policy framework is expected to be beneficial for the administrator executive among the civil servant to connect the independent policies and, at the same time, contribute to the overall goal of green economic growth. Through a broad policy structure too, this study helps the industry player to recognize their potential in any area related to sustainable innovation.
Originality/value
The policy framework illustrated is new to the literature, especially in Malaysia’s context. The compilation of current policy grounded by the 12th Malaysia Plan has not been presented in any publications.
Details
Keywords
Donia Aloui and Abderrazek Ben Maatoug
Over the last few years, the European Central Bank (ECB) has adopted unconventional monetary policies. These measures aim to boost economic growth and increase inflation through…
Abstract
Purpose
Over the last few years, the European Central Bank (ECB) has adopted unconventional monetary policies. These measures aim to boost economic growth and increase inflation through the bond market. The purpose of this paper is to study the impact of the ECB’s quantitative easing (QE) on the investor’s behavior in the stock market.
Design/methodology/approach
First, the authors theoretically identify the transmission channels of the QE shocks to the stock market. Then, the authors empirically assess the financial market’s responses to QE shocks in a data-rich environment using a factor augmented VAR (FAVAR).
Findings
The results show that the ECB’s unconventional monetary policy positively affects the stock market. A QE shock leads to an increase in stock prices and a drop in the realized volatility and the implied risk premium. The authors also suggest that the ECB’s QE is transmitted to the stock market through five main channels: the liquidity, the expectation, the portfolio reallocation, the interest rates and the risk premium channels.
Practical implications
The findings help to better understand the behavior of stock market assets in a data-rich economic context and guide investors and policymakers in the presence of unconventional monetary tools. For instance, decision-makers and investors should consider the short-term effect of the QE interventions and the changing behavior of the financial actors over time. In addition, high stock market returns can increase risk appetite. This can lead investors to underestimate the market risk. Decision-makers and market participants should take into consideration the impact of the large injection of money through the QE, which may raise the risk of a speculative bubble in the financial market.
Originality/value
To the best of the authors’ knowledge, this is the first study that incorporates a theoretical and empirical analysis to explore QE transmission to the stock market in the European context. Unlike previous studies, the authors use the shadow rate proposed by Wu and Xia (2017) to quantify the effect of the ECB’s QE in a data-rich environment. The authors also include two key risk indicators – the stock market risk premium and the realized volatility – to capture investors’ behavior in the stock market following QE shocks.
Details
Keywords
Ladislava Issever Grochová and Michal Škára
This chapter examines the impact of sectoral indebtedness on GDP in Czechia, initially a low-indebted small open economy in which debt dynamics are becoming a major concern. The…
Abstract
This chapter examines the impact of sectoral indebtedness on GDP in Czechia, initially a low-indebted small open economy in which debt dynamics are becoming a major concern. The impact of household debt, non-financial corporation debt and public debt is analysed with the use of local projections based on instrumental variable estimations. The results show a more pronounced influence of household debt compared to non-financial corporation and government debt. Initially, increasing household debt stimulates short-run economic activity, but in the medium run, it limits household consumption and negatively affects output. This negative impact gradually turns into a positive effect in the long run. Non-financial corporation debt has a negative short- to medium-run impact but can have a small positive effect in the long run due to the prevalence of tradable industries. Public debt initially has a short-run negative impact, but then gradually becomes positive. Overall, the findings have implications for macroeconomic policies and the importance of monitoring financial stability.
Details
Keywords
Sabri Burak Arzova and Bertaç Şakir Şahin
The purposes of this study are to contribute to the limited green growth (GG) literature in emerging markets, to analyze GG from a financial economy perspective and to determine…
Abstract
Purpose
The purposes of this study are to contribute to the limited green growth (GG) literature in emerging markets, to analyze GG from a financial economy perspective and to determine the contribution of financial development and innovation to GG in Brazil, Russian Federation, India, China and South Africa and Türkiye (BRICS-T). BRICS-T countries significantly impact the world population, international politics, energy resources and economy. In addition, BRICS-T countries are one of the leading countries in the world with their sustainability efforts. Investigating the GG model in these countries may contribute to structuring emerging economies around the principles of GG and advancing global green transformation efforts.
Design/methodology/approach
The authors applied panel data analysis from 2001 to 2019. GG is economic growth free from environmental depletion in the model. National income, personnel expenditure and foreign direct investments are macroeconomic variables. These variables measure economic development and promote economic and social progress, which is essential for GG. Capital accumulation and innovation are essential tools in GG transformation. Therefore, financial development and patent applications represent the moderating variables. The authors estimate the fixed effect model with Parks-Kmenta robust.
Findings
Empirical results show that national income growth and foreign direct investments positively affect GG. Personnel expenditure negatively affects GG. On the contrary, financial development and patent growth have little moderating role.
Originality/value
This study contributes to the literature on creating a GG model in emerging countries. The study is original in its model and sample.
Details
Keywords
The Central Bank of Nigeria (CBN) recently relaunched Nigeria’s cashless policy initiative which seeks to reduce financial crime and tax avoidance, decrease cash dependency…
Abstract
Purpose
The Central Bank of Nigeria (CBN) recently relaunched Nigeria’s cashless policy initiative which seeks to reduce financial crime and tax avoidance, decrease cash dependency, advance the adoption of digital financial services (DFS), decrease the risks to the payment system and foster financial inclusion. This study aims to identify the unique challenges of going cashless in Nigeria, particularly in terms of infrastructural, exclusionary and cost implications of the policy on the average citizens.
Design/methodology/approach
The author applies a doctrinal research methodology to identify and reflect on key challenges of the cashless policy from the economic, regulatory and transactional perspectives.
Findings
The cashless policy initiative in Nigeria heralds value for financial integrity, financial policy regulation and user convenience. The mode of introduction, however, ushers in significant challenges and hardly considers Nigeria’s inadequate payment infrastructure, persistent financial exclusion, low levels of financial and digital literacy and capability, high cost of using DFS and pervasive proclivity for cash. As Nigerians adjust albeit inconveniently to the policy, the CBN can ameliorate the hardship by strengthening the payment infrastructure, particularly for digital payments, fostering consumer trust by safeguarding user funds and enabling consumer preferences.
Research limitations/implications
Research materials include the national regulator’s policy documents and newspaper articles that have not been published in formal reports but non-the-less adequately mirror the policy intention of the CBN and the lived experiences of Nigerians.
Practical implications
This study identifies the practical steps and regulatory measures that the CBN can take to improve acceptance and meaningful and sustainable adoption of the cashless policy by the majority of Nigerians.
Social implications
The recommendations that are proffered provide some rich insights to inform regulatory direction for the CBN to seamlessly phase-in the cashless policy and consequently drive down financial exclusion in Nigeria.
Originality/value
This study contributes to the policy discussion around the introduction of the cashless Nigeria project. The doctrinal research method highlights the policy intentions of the regulator in juxtaposition with lived experiences of Nigerians. This study offers recommendations to bolster financial inclusion, stability and integrity.
Details
Keywords
Christina Anderl and Guglielmo Maria Caporale
The article aims to establish whether the degree of aversion to inflation and the responsiveness to deviations from potential output have changed over time.
Abstract
Purpose
The article aims to establish whether the degree of aversion to inflation and the responsiveness to deviations from potential output have changed over time.
Design/methodology/approach
This paper assesses time variation in monetary policy rules by applying a time-varying parameter generalised methods of moments (TVP-GMM) framework.
Findings
Using monthly data until December 2022 for five inflation targeting countries (the UK, Canada, Australia, New Zealand, Sweden) and five countries with alternative monetary regimes (the US, Japan, Denmark, the Euro Area, Switzerland), we find that monetary policy has become more averse to inflation and more responsive to the output gap in both sets of countries over time. In particular, there has been a clear shift in inflation targeting countries towards a more hawkish stance on inflation since the adoption of this regime and a greater response to both inflation and the output gap in most countries after the global financial crisis, which indicates a stronger reliance on monetary rules to stabilise the economy in recent years. It also appears that inflation targeting countries pay greater attention to the exchange rate pass-through channel when setting interest rates. Finally, monetary surprises do not seem to be an important determinant of the evolution over time of the Taylor rule parameters, which suggests a high degree of monetary policy transparency in the countries under examination.
Originality/value
It provides new evidence on changes over time in monetary policy rules.
Details
Keywords
Karikari Amoa-Gyarteng and Shepherd Dhliwayo
This study clarifies the intricate nature of globalization's impact on unemployment rates in South Africa. Given the heterogeneous views on globalization's effect on economic…
Abstract
Purpose
This study clarifies the intricate nature of globalization's impact on unemployment rates in South Africa. Given the heterogeneous views on globalization's effect on economic development, this study aims to offer a nuanced perspective. Furthermore, it aims to explore the mediating role of entrepreneurial development in shaping the complex relationship between globalization and unemployment.
Design/methodology/approach
The study employs four key indicators to measure entrepreneurial development, globalization and unemployment rates in South Africa. Hierarchical regression is used to evaluate the relationship between globalization and unemployment rates, and how entrepreneurial development mediates this relationship. Additionally, both the Sobel test and bootstrapping analyses were employed to verify and validate the mediating relationship.
Findings
The study demonstrates that globalization constitutes a crucial determinant of (un)employment rates in South Africa. The study shows that entrepreneurial development, specifically in the context of established business ownership, but not total early-stage entrepreneurial activity, exhibits an inverse relationship with unemployment rates. Moreover, it was observed that the positive impact of globalization on entrepreneurial development in South Africa becomes evident as SMEs advance to the established stage.
Research limitations/implications
The study's concentration on South Africa constrains the applicability of the results to other nations.
Practical implications
Based on the findings of this study, it is essential for emerging economies, such as South Africa, to take measures to foster a robust entrepreneurial ecosystem that can aid in the growth and international competitiveness of young SMEs.
Originality/value
To the best of the authors' knowledge, this study represents the first endeavor to analyze the potential impact of entrepreneurial development, as measured by both nascent and mature SMEs, on the correlation between globalization and unemployment.
Details
Keywords
Shireesha Manchem, Malathi Gottumukkala and K. Naga Sundari
Purpose: This chapter aims to enlighten the stakeholders on the role and contribution and the issues and challenges of large-scale industries in the wake of the globally unified…
Abstract
Purpose: This chapter aims to enlighten the stakeholders on the role and contribution and the issues and challenges of large-scale industries in the wake of the globally unified economies.
Need for the study: Large-scale industries are one of the pillars of any nation and can exercise an immense impact on the numerous facets of the economy of any country. Their role and contribution can benefit all the stakeholders, especially in today’s integrated and interdependent world economies. Hence, there is an absolute need to highlight the issues and challenges and suggest measures to overcome them to promote a resilient global economy.
Methodology: The study gathered data from secondary sources like textbooks, articles, and the internet.
Findings: The findings of the study state that large-scale industries are enormous contributors to employment creation, development of the economy, growth of revenue, research and development (R&D) and innovation, export promotion, and infrastructure. The significant challenges include regulatory compliance, workforce management, economic volatility, political instability, supply chain management, environmental compliance, and technology and infrastructure.
Protectionism, deregulation, public–private partnership, privatisation, and environmental regulation are significant government decisions that affect large-scale industries. The study identifies tax incentives, easy access to financing, and domestic and international trade policies to safeguard large-scale industries’ interests.
Practical implications: Large-scale industries contribute towards the growth of global economic resilience in terms of employment generation, technological advancements, and innovation, fostering international trade in today’s interconnected world.
Details
Keywords
The purpose of this study is to provide new insights into the relationship between fiscal policy and total factor productivity (TFP) while accounting for several economic and…
Abstract
Purpose
The purpose of this study is to provide new insights into the relationship between fiscal policy and total factor productivity (TFP) while accounting for several economic and econometric issues of the phenomenon like non-stationarity, fiscal feedback effects, persistence in productivity, country heterogeneity and unobserved global shocks and local spillovers affecting heterogeneously the countries in the sample.
Design/methodology/approach
The paper is empirical. It builds an Error Correction Model (ECM) specification within a dynamic heterogeneous framework with common correlated effects and models both reverse causality and feedback effects.
Findings
The results of this study highlight some new findings relative to the existing related literature. The outcomes suggest some relevant evidence at both the academic and policy levels: (1) the causal effects going from fiscal deficit/surplus to TFP are heterogeneous across countries; (2) the effects depend on the time horizon considered; (3) the long-run dynamics of TFP are positively impacted by improvements in fiscal budget, but only if the austerity measures do not exert slowdowns in aggregate growth.
Originality/value
The main originality of this study is methodological, with possible extensions to related phenomena. Relative to the existing literature, the gains of this study rely on the way econometric techniques, recently proposed in the literature, are adapted to the economic relationship of interest. The endogeneity due to the existence of reverse causality is modelled without implying relevant performance losses of the models. Moreover, this is the first article that questions whether the effects of fiscal budget on productivity depend on the impact of the former on aggregate output growth, thus emphasising the importance of the quality of fiscal adjustments.
Details